RIDEGURU
Tell me something i don't know.
The companies are already unprofitable, and facing strict regulation.
The other factor driving Uber’s losses in that its vaunted “surge pricing” mechanism has been partially rolled back. This practice — matching driver supply with rider demand by decreasing pay when demand is low and increasing it during peak hours — created a double backlash. Drivers would be deterred from coming back to work after a low-paying day, and riders had an even more negative reaction to large price spikes. Without this at the center of Uber’s strategy, it’s left selling consistently below cost in an effort to maintain a workforce and ridership.
How long can they last like this:
Uber and Lyft may be able to absorb these costs for a short time if investors still think there is hope for the company. But the IPO debacle — in which it significantly underperformed its private valuation — shows that confidence may be waning.
https://www.nationalreview.com/2019/07/uber-and-lyft-bubbles-about-to-burst/
Comments
What rights ?? You are owner operators and can choose not to work for ride apps. This is why Yellow cabs will never disappear but as Trump goes after Google , Facebook and etc Uber and lyft stocks will plummet .
They've been saying this for years! LOL.
First prick of the bubble at the end of August when AB5 passes.